Honda posts first annual loss since 1957, gives up on its electrification targets

Honda has just posted its first annual loss since 1957 as a listed company, due to the hit it took in order to restructure its EV business. Its operating loss totaled JPY 414.3 billion (approximately $2.6 billion), for its fiscal year which ended in March, compared to a profit of JPY 1.2 trillion ($7.5 billion) the previous year.

Honda's EV-related losses for the year ending in March totaled a whopping JPY 1.45 trillion ($9.1 billion). The company expects to face additional JPY 500 billion ($3.1 billion) costs related to its EV business in the coming year.

The good news is that despite all of this, Honda expects to turn a JPY 500 billion ($3.1 billion) profit this year, thanks to some cost reduction measures and its profitable motorcycle business, which has recently achieved record-high sales.

Honda CEO Toshihiro Mibe said the company is giving up on its target to have EVs make up a fifth of its new car sales by 2030, as well as the target of a full shift to electric or fuel cell vehicle sales by 2040. The company is also indefinitely suspending its Canada EV project, a $11 billion investment plan to produce EVs and batteries in the country.

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